COMPANY NEWS; NEWALLIANCE BANCSHARES TO BUY CORNERSTONE BANCORP

NewAlliance Bancshares agreed to buy Cornerstone Bancorp for $49 million in cash or stock to add branches in the southwestern part of Connecticut. Cornerstone shareholders will receive either $35 in cash or 2.518 shares of NewAlliance stock for each share they own. The cash price is a 10 percent premium over Cornerstone's closing price Tuesday. The deal will bring NewAlliance's assets to over $6.6 billion and help it expand. NewAlliance, based in New Haven, will have 71 branches after the deal. NewAlliance bought two banks in 2004, and last month said it would buy Trust Company of Connecticut.